Agricultural R&D, spatial spillover and regional economic growth in different R&D sectors of performance: evidence from a spatial panel in regions of the EU-28

Shahrzad Anousheh, Kambiz Hojabr-Kiani, Ahmad Mojtahed and Homayoun Ranjbar
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Shahrzad Anousheh: Department of Economic, Science and Research Branch, Islamic Azad University, Tehran, Iran
Kambiz Hojabr-Kiani: Department of Economic, Science and Research Branch, Islamic Azad University, Tehran, Iran
Ahmad Mojtahed: Department of Economic, Allameh Tabataba'i University, Tehran, Iran
Homayoun Ranjbar: Department of Economic, I.A.U. Isfahan (Khorasgan) Branch, Isfahan, Iran

Agricultural Economics, 2018, vol. 64, issue 4, 163-169

Abstract: Agricultural R&D has been identified as an important determinant of economic output in the agricultural sector. Surprisingly, in previous studies, spatial spillover associated with R&D spending in the agricultural sector has not been taken into account. This paper investigates the effects of spatial spillover of agricultural R&D on regional economic growth across EU-28 NUTS-II regions in the period 1995-2014. In particular, we extend previous studies by considering spillover in all sectors of agricultural R&D performance including business enterprise, government and higher education. The spatial Durbin panel data model is employed to estimate brooders effect including direct and indirect effects. Empirical results show a positive effect of agricultural R&D and its spatial spillover on regional growth in all performance sectors. Moreover, the impact of spatial spillover of agricultural R&D on regional growth depends on the performance of the R&D sectors; positive spillovers are stronger in the business enterprise sector. Finally, the interaction effect between the economic output of the agricultural sector of each region with that of its neighbours is significantly positive.

Keywords: agricultural output; panel data; spatial Durbin model (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:64:y:2018:i:4:id:224-2016-agricecon

DOI: 10.17221/224/2016-AGRICECON

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